July 29, 2010

Sony Surprises With Profit In The First Quarter

His rivals Panasonic and Sharp also reported earnings in April-June period, compared to the losses suffered in the same period a year ago, underscoring a healthy demand for LCD televisions, computers and other electronic items.

Panasonic joined Sony to improve its annual outlook and unveiled plans for a stock offering of 5,700 million dollars to finance the acquisition of two units at a time when it seeks to reduce duplication of operations and expand sales of energy-related products and the environment.

"(Sony) had good results in the quarter with an aggressive marketing (...) but its rate of growth will slow this quarter because the total sales of equipment is falling in line with a weakening global economy," said Park Young-Joo, an analyst at Woori Investment and Securities in Seoul.

Sony recorded an operating profit between April and June of 67,000 billion yen (669 million) versus a consensus of a loss of 13 million yen found in a survey four analysts, and to a loss of 25,700 million yen in during the same period a year ago.

Sony, the world's second-largest maker after Canon cameras, he cited among the reasons for improved growth in sales of Bravia televisions, Vaio computers and Playstation 3 consoles and software.

The firm also said to have benefited from aggressive cost cutting taxes during the last financial year by its chief executive, Howard Stringer.

"Sony's results far exceed market expectations. The main reasons were increased demand for electronic products and stronger demand from emerging markets like China and Latin America." said Anita Huang, director of ING in Japan.

For the year to March 2011, the company raised its operating profit forecast by 12.5 percent to 180,000 million yen, compared with a consensus of 152 600 million yen found in a survey of 22 analysts conducted by Thomson Reuters I / B / E / S.

The alliance of mobile phone and Sony Ericsson, Sony Ericsson, had a second consecutive quarterly profit this month, recovering from a dismal 2009 on robust demand for smartphones.

- Written By Rekhilesh -

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